A Memorandum of Arrangements was signed by the Secretary, the Chief of the Defence Force and the CEO DMO on 15 June 2005, and is intended to document the relationship between Defence and the DMO. Under this document sits a large number of detailed agreements covering major and minor acquisition projects, sustainment of ADF fleets, and services provided to facilitate these activities.
Two principal purchaser-provider arrangements have been established to support equipment acquisition and sustainment in the new relationship with Defence: Materiel Acquisition Agreements and Materiel Sustainment Agreements.
Materiel Acquisition Agreements cover the DMO's acquisition services to Defence for both major and minor capital equipment. Agreements are between the Chief of the Capability Development Group, on behalf of Defence, and the CEO DMO for major capital equipment. For Minor Capital Equipment projects, these are between the relevant Capability Managers, on behalf of Defence, and the CEO DMO.
Chart 7.1 DMO within the Defence Portfolio
Materiel Sustainment Agreements cover the sustainment of current capability, including services such as repairs, maintenance, and the provision of fuel and explosive ordnance. These agreements are between the Capability Managers and the CEO DMO.
The DMO reports monthly to the Defence Committee and the Minister on its performance in relation to these agreements through the Acquisition Overview Reports and Sustainment Overview Reports.
Other purchaser-provider arrangements between the DMO and Defence are the Shared Services Agreements. Shared Services Agreements cover a broad range of services provided by each agency to the other. Services covered by these agreements include payroll, accommodation and banking services provided by Defence, and contracting policy and advice provided by the DMO.